Dimensional has announced the launch of one of the first local funds to apply an ESG filter to emerging markets.
The global asset manager’s Emerging Markets Sustainability Trust will allow Australian and New Zealand investors to “pursue targeted sustainability goals in emerging markets within a broadly diversified, cost-effective and systematic investment framework”.
The fund, which aims to invest in over 1,000 individual securities across 24 countries, has been designed to reduce exposure to greenhouse gas emission and potential emissions from fossil fuel reserves.
“Many of our clients want transparent, effective investment solutions that focus on climate change in a measurable way,” Dimensional Australia chairman and CEO Glenn Crane said.
“With many emerging markets having higher emissions than developed markets, this means clients can have a meaningful impact across their total portfolio.”
The move comes after Morningstar’s fund flows report showed that Dimensional had the second highest inflows of any manager into ESG strategies in the first quarter of 2021.
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